SECP proposes new regulations for insurance agents

April 30 2020: The Securities and Exchange Commission of Pakistan (SECP) has notified draft Corporate Insurance Agents Regulations, 2020 for eliciting public comments. Proposed Regulations aim at strengthening the regulatory regime for corporate insurance agents including bancassurance and curtail mis-selling to potential policyholders.

The draft Regulations further strengthen the sales process by offering more disclosures to potential policyholders/customers. The after sales callback confirmation process has been improved by including basic script of callback confirmation in regulations. Moreover, all documents will be provided to policyholder, either in English or Urdu language at their choice. The proposed regulations promote digitalization, introduce automatic commission claw-back provision, minimum premium allocation rates and rationalize commission rates etc.

Once finalized in the light of stakeholders consultation, these regulations will repeal the Bancassurance Regulations, 2015 and the SEC Directive for Corporate Insurance Agents (excluding Banks) and Technology Based Distribution Channels, 2017.

The draft regulations have been placed on SECP’s website .

Interested people can submit their suggestion/comments on proposed regulations within 30-days of the date of SRO.